In a landmark decision aimed at securing the future of Germany’s largest steel producer, Thyssenkrupp Steel and the IG Metall union have reached a consensus on a comprehensive restructuring agreement named “Steel Realignment”. The accord, finalized after intense negotiations, sets the foundation for operational and financial transformation, designed to keep the company competitive in a rapidly changing global steel market.
The agreement outlines strategic adaptations to the production network, staff reductions through efficiency programs, and further structural changes - all geared towards maintaining an independent and viable steel business through 2030. Key areas of the restructuring agreement are capacity reductions and investment realignment, efficiency measures to reduce staff by 3,700, and outsourcing and spin-offs of employees.
To improve operational efficiency, Thyssenkrupp Steel will reduce its production capacity to a shipping target of 8.7-9 million mt. As part of this, the company will shut down blast furnace No. 9 at the beginning of the next fiscal year, decommission blast furnace No. 8 once the new direct reduction plant becomes operational, close hot strip mill No. 3 in Bochum in early 2026, close the electrical steel site on Castroper Strasse by the end of fiscal year 2027-28, and avoid closure of the Eichen plant by exploring optimization plans for the Siegerland site.
In addition, investments are being made in upgrading a continuous casting line to ensure the supply of narrow slabs required at the Hohenlimburg location and for the modernization of Electrical Steel's locations. These adaptations to the production network will be accompanied by a workforce reduction by about 1,600 employees, which is to be implemented by the end of the 2028-29 financial year.